Why did Trust Wallet Token drop by 20% after rising 100% in the Past 30 Days

Key Takeaways:

• The Trust Wallet Token surged by more than 100% in the past 30 days, meanwhile the fresh price slash has dragged the price lower by 20% in the past 2 days.
• The TWT price rose to slice through the crucial resistance at $2.5 to mark a new monthly high above $2.77.
• The Trust Wallet token (TWT) closed the previous day’s trade at $2.35 with a market capitalization of $945.75 million and circulating supply of 416.64 million TWT.

Trust Wallet token underwent a massive rally in the past few weeks by recording a gain of more than 150%, soon after the collapse of the popular crypto exchange FTX. With the magnificent surge, the TWT price marked itself as one of the best-performing assets with over 225% year-to-date gains. As the FTX collapse intensified, it created a ‘bank-run’ situation where-in the traders withdrew their funds from exchanges in mass.

In the meantime, the requirement of self-custody wallets touched the skies. This was when the popular wallet, Trust Wallet was highly recommended. Moreover, the mention from Binance CEO, CZ, played a major role in driving the price up to mark the interim highs. Further, the number of addresses holding 1000 TWT 10 million TWT tokens spiked high indicating a huge whale accumulation. 

However, the token has been witnessing a significant drop in the past few days plunging nearly 20%. The market sentiments have turned bearish due to which the price has slipped very close to $2. Meanwhile, the bulls are trying hard to hold the price above but an extended bearish push could compel the price to visit the lower levels for a while.

Trust Wallet Token Technical Overview

Source: Tradingview

The Trust wallet token displayed a magnificent jump soon after the collapse of the FTX exchange. While most of the tokens along with Bitcoin experienced a free fall, TWT price maintained a consolidated trend but towards the north. After reaching the monthly highs, the price hovered within the pivotal resistance zone for a while, and the current market conditions dragged the price lower, slicing through the bullish trade set-up. 

Presently, the TWT tokens have dropped below the crucial 50-day MA in the long term and testing the next pivotal levels at 200-day MA levels. Here, if the bulls fail to hold at these levels, then a major drop may lead the price below $1.98, where-in a rebound may be expected. However, a minor buying volume has kicked in which may prevent a further drop. 

Read more: Top Crypto Price Predictions

Trust Wallet Token On-Chain Analysis

• The total weighted sentiment is the combination of the positive & negative mentions over a specified time. The levels spiked extremely high in the past few days, which indicates the market participants are extremely bullish over the asset with huge positive mentions. 

Source: Santiment

• The platform’s development activity has significantly decreased in the last 12 to 18 months, implying that fewer developments and upgrades may have occurred over time. The levels continue to drop but the price appears to be independent which is displaying a bullish reversal soon. 

Source: Santiment

 Conclusion

Trust Wallet gained huge attention amid the FTX fallout which impacted the value of its native token TWT to a large extent. No doubt, the current market conditions are not in favour of the bulls, but a trend reversal is expected which may uplift the price above the bear’s reach. As long as the selling volume remains low, the bulls are expected to take over the rally any time from now.